Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive, aesthetic medical devices for practitioners worldwide, reported fourth quarter and full year 2022 financial results for the period ended December 31, 2022, and recent business highlights.
- Record Quarterly Revenue of $13.8M
- Full Year Revenue Grew 63% YoY to $35.6M
- Over 50,000 Pulse Treatments Conducted in 2022
- 2022 Recurring Revenue Up 177%, to $7.2M; Representing More Than 20% of Revenue
- Key Business and Industry Tailwinds Expected to Drive Further Significant Growth in 2023 and Beyond
SAN CLEMENTE, Calif., March 08, 2023 (GLOBE NEWSWIRE) -- Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive, aesthetic medical devices for practitioners worldwide, reported fourth quarter and full year 2022 financial results for the period ended December 31, 2022, and recent business highlights.
Fourth Quarter and Full Year 2022 Financial Highlights
- Q4 record Revenues of $13.8M; 55% year-over-year growth
- Full year 2022 Revenue of $35.6M, a year-over-year increase of 63%
- Recurring Revenue of $7.2M, a year-over- year increase of 177%, representing more than 20% of total revenue
- Gross Profit was $26.3M, a year-over-year increase of 62%
- IFRS Gross Margin: 73.9%; Non-IFRS 74.6%
- IFRS Operating Loss: $17.3M; Non-IFRS: $12.2M
- Cash as of December 31, 2022: $32M
Management Commentary
Mr. Louis Scafuri, Sofwave CEO commented, “Our impressive 2022 top-line results were led by strong performances in both North America and Asia. The robust and growing recurring revenue base that we have generated are indicative of Sofwave’s rapid penetration of the $2.3 billion total addressable energy-based device skin tightening market. Importantly, we continue to expand our U.S. sales force, which will enable us to further leverage the multiple FDA cleared indications for our SUPERB technology. Additionally, our digital marketing consumer awareness efforts have helped to drive the demand for Sofwave treatments as evidenced by our significant pulse sales growth in 2022. We have also expanded treatment indications in the period to include the short-term improvement in the appearance of cellulite, which represented a $1 billion dollar market globally in 2021 and is expected to grow at a compound annual growth rate of 11% through 2030.
Mr. Scafuri continued, “Outside the U.S., we gained regulatory clearances in key international markets, including Taiwan, Brazil, and Mexico. Moreover, our collaboration and distribution agreement with HTDK Group, which is wholly owned by Warburg Pincus, is an important step for Sofwave to leverage the rapidly growing $29 billion aesthetic medicine market in China. As global market conditions continue to be favorable, we see demand for our Sofwave treatments increase and are well-positioned for meaningful further growth. Of significance, COVID restrictions having substantially eased in Asia and are improving market accessibility across this critical geography,” concluded Mr. Scafuri.
Dr. Shimon Eckhouse, Chairman of the Board commented: “The proprietary ultrasound technology developed by Sofwave offers patients a superior, non-invasive, and highly effective solution for wrinkle treatment, lifting of eyebrows and neck area and treatment of cellulite. Our ability to treat these very common and aesthetically disturbing conditions by inducing growth of new collagen and elastin in the skin without any damage to the upper layers of the skin are a key factor in the growth in our pulse revenue, which is supported by over 100,000 commercial treatments performed using our SUPERB technology. Sofwave continues to invest in generating an industry-leading trove of clinical data demonstrating the efficacy, patient safety and comfort of our device as compared to conventional invasive and non-invasive solutions. We also remain focused on building the IP around our innovative solutions and were pleased to receive approval for our first U.S. patent in 2022, which protects key features of SUPERB’s ultrasound and cooling technology.”
2022 and Recent Operational Highlights
- Conducted over 50,000 treatments in 2022 and over 100,000 treatments since initial approval
- Additional FDA clearance for body indication: appearance of cellulite
- Additional regulatory approvals in key markets, including Taiwan, Brazil, and Mexico
- Inked key collaboration and distribution agreement with a major partner for the $29 billion aesthetic medicine Chinese market
- Continued to expand U.S. sales team
- Received first U.S. patent; covers key elements of the proprietary SUPERB technology
Financial Summary (FY’22)
| IFRS Results (U.S. dollars in thousands) | ||
| FY 2022 | FY 2021 | |
| Revenues | $35,630 | $21,839 |
| Gross Profit | $26,332 | $16,236 |
| Gross Margin | 73.9% | 74.3% |
| Operating Loss | ($17,338) | ($8,867) |
| *Non-IFRS Results (U.S. dollars in thousands) | ||
| FY 2022 | FY 2021 | |
| Gross Profit | $26,584 | $16,236 |
| Gross Margin | 74.6% | 74.3% |
| Operating (Loss)/Profit | ($12,205) | ($3,832) |
(*) Excluding stock-based compensation
About
Sofwave Medical Ltd. has implemented an innovative approach to wrinkle reduction lifting and cellulite using proprietary breakthrough technology. SUPERB™, Synchronous Ultrasound Parallel Beam technology is FDA-cleared to improve facial lines and wrinkles, lifting the eyebrow, and lifting lax submental tissue (beneath the chin) and neck tissue and the short-term improvement in the appearance of cellulite providing physicians with smart yet simple, effective, and safe aesthetic solutions for their patients. Contact: Info@sofwave.com
Investor Contact:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
britchie@lifesciadvisors.com
